BOARD MEETING DATE: March 12, 1999 AGENDA NO. 10




PROPOSAL:

Execute Contract to Cosponsor Development and Demonstration of the Mack E7G Natural Gas Engine at 400 Horsepower

SYNOPSIS:

The emission reductions exhibited by natural gas heavy-duty engines are well documented. The majority of in-service application of these engines is in local delivery trucks rather than over-the-road trucks. Class 8 trucks demand high horsepower (400 or more) and torque to meet their needs. The only currently available 400 HP natural gas engine is the Caterpillar C-12, a dual fuel engine. Staff proposes to cosponsor the development and demonstration of the Mack E7G 400 HP natural gas engine. Total cost of this project is $2,756,000; AQMD cost-share will not exceed $400,000.

COMMITTEE:

Technology, February 26, 1999, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with the Gas Research Institute for development and demonstration of the Mack E7G 400 HP natural gas engine in an amount not to exceed $400,000.

Barry Wallerstein, D.Env.
Executive Officer


Background

The Basin includes 39% of the state’s Class 7 and 8 trucks, and accounts for 43% of the state’s VMT for these vehicles. Among the state’s eight largest air districts, the South Coast accounts for 36.8% of the heavy-duty engine NOx emission inventory, and represents 50.5% of the exposed population to NOx emissions. The majority of heavy-duty vehicles in the Basin are powered by diesel engines, which contribute significantly to the Basin’s emissions inventory. The District has long recognized the adverse air quality and health impacts of diesel exhaust. The AQMD’s Environmental Justice Initiative No. 7 and the Children’s Air Quality Agenda target the reduction of diesel exhaust in the Basin.

Heavy-duty natural gas engine technology is commercially available for transit applications. However, the development of natural gas engine technology for the Class 7 and 8 truck sector has been slow. This segment of the truck sector requires high horsepower engines to meet their needs. Thus far, the only 400+ horsepower (HP) natural gas engine available is a dual fuel Caterpillar engine. While this engine can meet the needs of Class 7 and 8 truck fleets and is certified to a low NOx standard, it does not have the very low emissions associated with dedicated natural gas engines.

Proposal

The Gas Research Institute (GRI), in cooperation with Mack Trucks, Inc., proposes to develop and demonstrate a 400 HP Mack E7G dedicated natural gas engine with a final emissions goal of 2.0 g/bhp-hr NOx emissions. The first phase of the proposed project will focus on improvements to the existing E7G 325 HP natural gas engine. The objective will be to certify this engine configuration to 2.5 g/bhp-hr NOx + NMHC while retaining good driveability. The second phase will upgrade the fuel delivery system, the vehicle controller and other components to achieve 400 HP with 1400 ft-lb torque. Once the engine has been upgraded to the 400 HP configuration, it will be field tested in three to five trucks in a sequential manner. Initially, the 400 HP version will be certified at 2.5 g/bhp-hr NOx; with a final goal of a 2.0 g/bhp-hr NOx certification.

Benefits to AQMD

The proposed project is included in the October 1998 Update of the Technology Advancement Plan under category 98M1-2, "Development and Demonstration of Alternative Fueled, Heavy-Duty Trucks for Over-the-Road Applications." Certification of low-emission vehicles and engines, and their integration into the Basin’s transportation sector, is a high priority under the AQMP and the SIP. The benefit of replacing one 6.0 g/bhp-hr heavy-duty engine with a 2.0 g/bhp-hr engine in a vehicle that accumulates 70,000 miles annually is approximately 1600 lbs. This program is expected to lead to increased availability of low emission alternative fuel heavy-duty engines for use by over-the-road truck operators.

Sole Source Justification

Section VIII.B.2 of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. This request for a sole source award is made under provision B.2.d.(1): Projects involving cost sharing by multiple sponsors. It is in the best interest of the AQMD to join with GRI, Mack Trucks and DOE to development and demonstrate a 400 HP version of the Mack E7G dedicated natural gas engine.

Gas Research Institute is a non-profit organization whose members include utilities, fuel producers, and others in the natural gas industry. GRI supports a variety of research, development and demonstration efforts supporting the development and commercialization of natural gas engines and vehicles. GRI will provide project management responsibilities for the proposed project, coordinating all funding and technical progress aspects. DOE has been a consistent cosponsor of programs to develop and commercialize heavy-duty alternative fuel engine technologies. Mack Trucks, Inc. is one of the most well known heavy-duty truck and engine manufacturers in the world.

Resource Impacts

Total cost to the AQMD for the proposed project is $400,000; GRI is contributing $350,000, and DOE has committed $200,000 to Phase 2 of the project. Mack Trucks is committed to spending $1,806,000 specifically for this project. Total project cost is $2,756,000.

Sufficient funds are available in the FY 1998-99 Budget from revenues received from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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